Core Insights - Corning Incorporated (NYSE:GLW) is recognized as one of the 12 Unstoppable Dividend Stocks to buy according to analysts [1] - UBS analyst Joshua Spector raised the price target for Corning to $125 from $109, maintaining a Buy rating, citing potential optical deals in the pipeline [2] - Corning's Q4 2025 earnings showed a 14% increase in sales to $4.41 billion and a 26% rise in earnings per share to $0.72, with operating margin expanding by 170 basis points to 20.2% [3] - The company’s free cash flow nearly doubled to $1.72 billion in 2025 from $880 million in 2023 [4] - A significant multiyear agreement with Meta, valued at up to $6 billion, aims to support Meta's technologies and AI initiatives [5] - Corning has increased its Springboard plan target, now expecting to add $11 billion in incremental annualized sales by the end of 2028, up from the original goal of $8 billion [6] Company Overview - Corning operates as a materials science innovator with diverse businesses including Optical Communications, Display Technologies, Specialty Materials, Environmental Technologies, and Life Sciences [7]

Financial Data and Key Metrics Changes - For Q4 2025, sales increased by 14% year-over-year to $4.41 billion, and EPS grew by 26% to $0.72 [5][20] - Operating margin expanded by 170 basis points to 20.2%, achieving the Springboard target a year early, and ROIC increased by 150 basis points to 14.2% [5][20] - For the full year 2025, sales grew by 13% to a record $16.4 billion, with EPS growing by 29% to $2.52 [20] Business Segment Data and Key Metrics Changes - In Optical Communications, Q4 sales were $1.7 billion, up 24% year-over-year, with net income increasing by 57% to $305 million [20][21] - Display segment sales for Q4 were $955 million, with net income of $257 million, exceeding targets for the year [21][22] - Specialty Materials saw Q4 sales rise by 6% to $544 million, with net income up 22% to $99 million [23] - Automotive segment sales were $440 million, down slightly year-over-year, while net income for the full year was up 3% [25] Market Data and Key Metrics Changes - The enterprise business within Optical Communications grew by 61% year-over-year, with hyperscale data center sales growing significantly faster [21] - The carrier networks business saw a 15% increase in sales for the full year, primarily driven by interconnect data centers [21] Company Strategy and Development Direction - The company upgraded its Springboard plan to add $11 billion in incremental annualized sales by the end of 2028, up from the original $8 billion target [7][17] - A multi-year agreement with Meta worth up to $6 billion was announced to support AI ambitions, reflecting a commitment to U.S. manufacturing and innovation [9][10] - The company aims to enhance profitability and cash generation while pursuing organic growth opportunities [31][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving accelerated growth in Q1 2026, with core sales expected to rise by approximately 15% [8][26] - The company anticipates significant growth in the Optical Communications segment, supported by recent customer agreements [21][24] - Management noted that the financial profile has transformed significantly over the past two years, establishing a strong base for future growth [28][33] Other Important Information - The company plans to spend about $1.7 billion in capital expenditures for 2026, which is above the depreciation level [60][62] - The head of Investor Relations, Anne Nicholson, announced her retirement after 40 years of service [34][35] Q&A Session Summary Question: Are similar long-term agreements with other major customers included in the Springboard plan? - Management indicated that these agreements are significant but have not yet been fully included in the Springboard plan as they are still being finalized [39][40] Question: Is the optical fiber market experiencing supply constraints? - Management stated that there is enough fiber globally to meet demand, but they are expanding capacity for new high-density products due to robust demand [41][42] Question: Will Meta disproportionately increase purchases after the agreement? - Management clarified that while Meta's agreement is significant, they are concluding similar agreements with other major customers, which will expand the overall market [48][50] Question: How will the Meta deal be accounted for? - The deal will be accounted for in the enterprise business, while sales to carriers will be recorded in the carrier business [58] Question: What is the expected CapEx for 2026? - The company plans to spend about $1.7 billion in CapEx, which includes investments related to the Meta deal [60][67]

Flash | 27 Jan 2026 10:16:12 ET │ 10 pages Corning Incorporated (GLW.N) Corning and Meta Announce $6 Billion Multi-Year Agreement to Accelerate DC Buildout; Remain Constructive on Optical Demand CITI'S TAKE Corning and Meta have announced a multiyear $6 billion agreement to accelerate the build-out of advanced data centers in the United States (~1.5bln/yr). Under this agreement, Corning will supply Meta with its newest innovations in optical fiber, cable, and connectivity solutions specifically designed to ...

Group 1 - The US IPO market experienced a quiet week due to the Thanksgiving holiday, with two blank check companies going public and several others filing initial applications [1][3] - Soulpower Acquisition announced a merger with SWB Holdings, with a proposed valuation of $8.1 billion, marking one of the largest merger announcements of the year [1] - Two SPACs completed pricing, with Invest Green Acquisition raising $150 million and SC II Acquisition also raising $150 million, both focusing on renewable energy [1] Group 2 - Three SPACs filed for initial public offerings, including Mountain Lake Acquisition II aiming to raise $261 million, Vine Hill Capital II targeting $175 million, and Social Commerce Partners seeking $100 million [2] - Edison Oncology Holding submitted an IPO application to raise $25 million, while Direct Communications Solutions aims to raise $15 million [1][2] - The IPO market is expected to remain relatively calm at the beginning of December, with no pricing plans for the upcoming week, although some issuers may still complete pricing before year-end [3] Group 3 - Medline is anticipated to be a focal point in the IPO market, with an expected raise of $5 billion, which would be the largest IPO in the US since 2021 [3][4] - Other notable potential listings include Klook, Grayscale, and York Space Systems, which have recently submitted preliminary applications [4] - Companies like Hornbeck Offshore Services, Cardinal Infrastructure, and Andersen Group have updated their prospectuses and may go public before the end of the year [4]